Monday, March 9, 2015

A recent Bloomberg Business article reports that both Lowes & Home Depot experienced fourth quarter profits that beat revenue projections by the most in six quarters. So what does that mean to the housing market?
Consumer Confidence
Lowe’s Chief Executive Officer Robert Niblock said,
“Consumers are feeling better about their jobs, their wages and certainly feeling better about the value of their home, they are re-engaging in projects that they have put off.”
Sales to professional contractors have increased significantly as well, and were a driving factor in the quarter. Home Depot’s Chief Financial Officer Carol Tome calls this a “sign of health. If they are putting more items in their basket, it means they have work coming at them.”
Home Values Rising
In a quarterly consumer survey conducted by Lowe’s since 2007, the percentage of respondents who said that the value of their home is rising increased to its highest value ever, at 50%.
Whether Americans are finally adding that man-cave they’ve always wanted, or renovating a master suite, an increased confidence in the value of one’s home often sparks homeowners to invest in big-ticket projects.
The National Association of Realtors (NAR) reports that the median price of an existing home (for all housing types) rose year-over-year for the 35th consecutive month.
Not all who are renovating are planning on staying in their home. The Demand Institute reports that “nearly half of American households plan to move at some point in the future.”
For those who are planning on listing their home this spring, spending the time and money needed to update that 1950’s bathroom or kitchen can fetch higher prices in today’s market.
Bottom Line
Meeting with a local real estate professional can give you insight into the small (or big) improvements your home could use to draw the highest price and return on investment this spring.
John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171
Email: holbrook66@msn.com
www.johneholbrook.com

Bloomberg News reports that per December 13, 2014, Fannie Mae and Freddie Mac have set terms for letting borrowers put down as little as 3 percent of a home's cost to get mortgages, for first-time home buyers. They will also permit refinancing borrowers to reduce equity to 3 percent to cover closing costs. This is also a part of a broader effort to spur lending to minorities, young adults and first-time buyers.
While this program has earned some criticism, especially in light of the not so distant housing crash, officials of Fannie Mae and Freddie Mac said rules banning risky loan features will ensure that the new low-down payment mortgages are safe. Only borrowers buying or refinancing a single-family primary residence will be eligible.
John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171
Email: holbrook66@msn.com
www.johneholbrook.com

On Thursday, March 12, for the first time ever, Fernandina Beach Golf Club will host Bonhams Auction on Amelia Island. Among the many fabulous cars up for auction are the rare 1911 EMF Model "30" Factory Racer and a 1930 Rolls-Royce Phantom I Transformable Phaeton once owned by silver screen goddess Marlene Dietrich.
The Gooding & Company Amelia Island Auction will be held at the Omni Amelia Island Plantation on Friday, March 13. Ideal for collectors and enthusiasts of fine automobiles, the event will feature more than 80 rare-to-market discoveries.
The Amelia Concours Week concludes Sunday, March 15 with a grand finale as the 20th Annual Amelia Island Concours d'Elegance opens the International Concours season on the fairways of the Golf Club of Amelia Island.
Get it in gear and visit ameliaconcoursweek.com to learn more about all the events and start planning your trip to experience Amelia Concours Week!
John Holbrook - Realtor Amelia Island, Fernandina Beach & Yulee, Florida
Cell: 904-415-0171
Email: holbrook66@msn.com
www.johneholbrook.com